The Jay Powell Federal Reserve Chief Reduces Growth Care Once Rades Report on Disappointment
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The Jay Powell Federal Reserve Chair played concern about the growth of the US after he perfected the administration of Donald Trump, disappointing job numbers and burning week in financial markets.
Powell said on Friday that the world’s largest economy remained “in good shape” despite elevated “uncertainty” after the president launched an aggressive plan tariffs and spend cuts.
“We are focused on the separation of the signal from the noise as the odds of developing,” Powell said, adding Fed He did not “hurry up” to reduce interest rates and “he was well positioned to wait for more clarity.”
Powell’s comments have arrived because Blue Chip S&P 500 has completed a week lower by 3.1 percent, which is the worst drive since early September. US shares have suddenly withdrawn in recent weeks after gloomy economic reports have encouraged worries that Trump’s tariffs will slow down growth.
Corporate executives warned chaotic turns in trade policy including a Main turnaround This week, on the plans of administration for tariff goods from Canada and Mexico, it made it difficult to run a business and could arrive in fresh investment in the United States.
Now they are “at the intersection, economic,” said Charles Lemonides, the chief director of investment in Valuewworks, the New York Hedge Fund. “We do not know where politics goes and creates a huge restlessness.”
The Bureau Bureau published data on Friday, which showed that the United States created 151,000 jobs in February, which lacked 160,000 forecasts by economists interviewed by Reuters.
The unemployment rate was 4.1 percent last month, compared to expectations that will be stable to 4 percent.
“The feeling of investor was euphoric after the election, but there were a lot of cold water thrown at that euphoria in the last month,” said Jim Tierney, head of the concentrated US growth fund at Alliancebernstein.
“Powell says everything is fine, but that’s not what the consumers say, and it’s not where we heard business feelings,” he added.
Fed President recently signaled that the central bank would retain its main interest rate in its current range between 4.25 and 4.5 percent, as it evaluated the impact of Trump’s policy.
But the markets are increasingly betting that the Fed will be forced to reduce rates more aggressively this year than he thought, withdrawing the treasury lower and weighing on the dollar.
The US index of dollars, which accompanies the power of Greenback, has lost 4.3 percent this year.
Asked what Fed would reply to responding to the tariff imposed on American imports, Powell said on Friday: “What would really matter is what happens to the long -term expectations of inflation and how persistent inflationary effects are.”
Some economists have warned Trump’s reduction in consumption and a decrease in federal labor through the so -called “Ministry of Government Efficiency”, led by Elon Musk billionaire, they could also be withdrawal to the economy.
Earlier in the week, Trump rolled some tariffs He imposed Canada and Mexico in an attempt to soothe markets. On Friday, he admitted that some economic pain could come from his politics and their sometimes chaotic presentation.
“There could be a disorder, a little disorder,” said the president, repeating the line from his speech until Congress on Tuesday night. “There will always be a change and adjustment.”
